President Trump announces 25% tariff on all imported cars ahead of ‘liberation day’
US President Donald Trump has announced a new 25% tariff on all imported cars, threatening UK producers in their largest single export market.
Signing an executive order, Mr Trump said the tax would kick in on 2 April – what he has called “liberation day”.
This is when all his retaliatory import tariffs are supposed to take effect, but they have been delayed before.
The move ratchets up the global trade war Mr Trump himself kicked off at a time when his administration is battling the continued fallout from the Signalgate security breach in Washington.
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Impact of US tariffs on UK industry
Speaking late on Wednesday, Mr Trump said the proposal: “Will continue to spur growth. We’ll effectively be charging a 25% tariff.”
Similar duties on all car part imports are expected to follow in May, complicating the effects as even American car makers source components from around the world – meaning they could also face higher costs and lower sales.
The UK government has signalled it will not retaliate – mirroring its response to the tariffs on steel and aluminium imposed globally by the Trump administration earlier this month.
Chancellor Rachel Reeves condemned the protectionism but told Sky’s Wilfred Frost: “We’re not at the moment in a position where we want to do anything to escalate these trade wars,” in what will be seen as a nod to continuing UK trade deal talks with the US.
But the threat risks a huge impact for the country’s car industry, including manufacturers such as Jaguar Land Rover, Aston Martin and Rolls-Royce.
Official data shows that the US is the UK car sector’s largest single market by country, accounting for £6.4bn worth of car exports in 2023. That is 18.4% of the total.
Listed European car and car parts manufacturers saw further steep declines in their share prices in Thursday trading as the plans drew widespread international criticism.
Canadian Prime Minister Mark Carney called it a “direct attack” on Canadian workers.
Even Trump advisor Elon Musk, the Tesla boss, admitted in a post on his X platform that the hit to his company would be “significant”.
During his second term, Mr Trump has used tariffs frequently as a trade weapon.
Donald Trump announcing the 25% tariff on imported cars.
He cited plans from South Korean car maker Hyundai to build a $5.8bn (£4.5bn) steel plant in Louisiana as evidence the economic measures would bring back manufacturing jobs.
Even American and foreign firms already with domestic plants still rely on Canada, Mexico and other countries for parts and finished vehicles – meaning prices could increase and sales decline as new factories take time to build.
Tariffs are a key part of Mr Trump’s efforts to reshape global trade relations.
He plans to impose what he calls “reciprocal” taxes on 2 April that would match tariffs and sales taxes levied by other nations.
He has already placed a 20% tax on all imports from China.
Similarly, he placed 25% tariffs on Mexico and Canada, with a lower 10% tariff on Canadian energy products in addition to the duties on all steel and aluminium imports, including those from the UK.
Sky News understands the UK government is continuing to engage with the US on a trade deal and remains hopeful an agreement could be made before the tariffs come into force, but may retaliate if deemed necessary at a later date.
Mike Hawes, the chief executive of the UK car industry lobby group the SMMT, said: “Today’s announcement by President Trump is not surprising but, nevertheless, disappointing if, as seems likely, additional tariffs are to apply to UK made cars.
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“The UK and US auto industries have a long-standing and productive relationship, with US consumers enjoying vehicles built in Britain by some iconic brands, while thousands of UK motorists buy cars made in America.
“Rather than imposing additional tariffs, we should explore ways in which opportunities for both British and American manufacturers can be created as part of a mutually beneficial relationship, benefitting consumers and creating jobs and growth across the Atlantic.
“The industry urges both sides to come together immediately and strike a deal that works for all.”
Rudy Giuliani has been hospitalised following a car crash in New Hampshire, a spokesperson for the former New York City mayor said.
Mr Giuliani suffered “a fractured thoracic vertebrae, multiple lacerations and contusions, as well as injuries to his left arm and lower leg” when his vehicle was struck from behind while driving on a highway near Manchester on Saturday evening, according to Michael Ragusa, Mr Giuliani’s head of security.
“He sustained injuries but is in good spirits and recovering tremendously,” Mr Ragusa said in a statement on X, adding: “This was not a targeted attack.”
Mr Giuliani was in a rental car and “no one knew it was him”, according to Mr Ragusa.
His head of security said the 81-year-old had been “flagged down by a woman who was the victim of a domestic violence incident” and contacted police on her behalf. The crash shortly after was “random and unrelated” to the domestic violence incident, Mr Ragusa said.
Rudy Giuliani attended Donald Trump’s inauguration ceremony in January. Pic: Julia Demaree Nikhinson/Pool via Reuters
Mr Giuliani, who worked as an attorney for Donald Trump in his failed efforts to overturn the results of the 2020 election, is expected to be released from hospital in a few days.
His son, Andrew Giuliani, thanked people for reaching out after hearing about his father’s accident, writing on X: “Your prayers mean the world.”
“As a son, I can tell you that I’m honored to have a Dad that I can call the toughest SOB I’ve ever seen,” he added.
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US
US blocks Palestinian President Mahmoud Abbas and 80 other officials from United Nations’ annual meeting in New York
Palestinian President Mahmoud Abbas and 80 other officials have been blocked from attending September’s annual meeting of the United Nations General Assembly in New York.
US secretary of state Marco Rubio has revoked the US visas of delegates from the Palestinian Authority (PA) and Palestine Liberation Organisation (PLO), and denied others from applying for one.
It is the latest step by Donald Trump’s administration to target Palestinians with visa restrictions, and follows the suspension of a programme to allow injured children from Gaza to receive treatment in the US.
Mahmoud Abbas addressed the general assembly in 2024, but is barred from next month’s meeting. Pic: Reuters
“It is in our national security interests to hold the PLO and PA accountable for not complying with their commitments, and for undermining the prospects for peace,” a statement from the US State Department said.
It added that, to be considered partners for peace, both groups “must consistently repudiate terrorism, and end incitement to terrorism in education, as required by US law and as promised by the PLO”.
Offensive will cause ‘intolerable deaths’
Several US allies, including France, Malta, and Australia have announced plans to recognise Palestine as a state at September’s United Nations General Assembly. Canada and the UK will too, unless Israel meets certain conditions.
Israel declared Gaza’s largest city a dangerous combat zone on Friday.
The army launched a planned offensive that has drawn international condemnation.
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Thick smoke rises from Gaza City after Israeli strikes
Foreign ministers from Iceland, Ireland, Luxembourg, Norway, Slovenia and Spain released a joint statement saying the military operations in Gaza City will cause “intolerable deaths of innocent Palestinian civilians”.
Gaza latest: Israel’s Gaza City offensive condemned
Hundreds of thousands of Palestinians are sheltering in Gaza City while enduring famine.
An Israeli armoured vehicle in northern Gaza on Friday. Pic: AP
Palestinians ride a truck carrying humanitarian aid in Gaza City. Pic: AP
The Palestinian ambassador to the United Nations (UN), Riyad Mansour, said Mr Abbas had planned to lead the delegation to the UN meetings and was expected to address the general assembly at the general debate, which begins on 23 September.
He was also expected to attend a high-level meeting co-chaired by France and Saudi Arabia on 22 September about a two-state solution, a broad idea involving Israel coexisting with an independent Palestinian state.
The State of Palestine is an observer member of the UN, meaning it can speak at meetings but not vote on resolutions.
The State of Palestine cannot vote on UN resolutions. Pic: AP
US decision ‘contravenes international law’
The Palestinian Authority “expressed its deep regret and astonishment” at the visa decision, calling it “a violation of US commitments” as the host of the UN, and claiming it “contravenes international law”.
UN spokesman Stephane Dujarric said the world body would be seeking clarification in the “hope that this will be resolved”.
Hundreds of diplomats left when Israeli leader Benjamin Netanyahu began speaking at the general assembly in 2024. Pic: Reuters
The State Department said that the Palestinian Authority’s mission to the UN, comprising officials who are permanently based there, would not be included in the restrictions.
Under a 1947 UN agreement, the US is generally required to allow access for foreign diplomats to the UN in New York.
But Washington has said it can deny visas for security, extremism and foreign policy reasons.
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The death toll in Gaza has now risen to 63,025, according to the Hamas-run health ministry, which does not differentiate between civilians and combatants.
It also reported five more malnutrition-related deaths in the last 24 hours, bringing the total number during the war to 322, with 121 of them children.
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